Guide · Deduction software
Not all deduction tools work the same way. This guide covers what to evaluate, how the main approaches differ, and where each fits in a CPG operations workflow.
For CPG operations, finance, and leadership teams evaluating how to manage retailer and distributor deductions.
Direct answer
CPG brands manage deductions through some combination of three approaches: an outsourced recovery service, a software tool, or an internal hire. Most brands end up with a hybrid, but the mix depends on volume, team size, distributor complexity, and how much of the deduction lifecycle you want to own versus outsource.
An outsourced provider that manages deductions on your behalf, typically charging 20-35% of recovered dollars.
Strengths
Tradeoffs
Upload-based or API-connected software that classifies deductions, tracks disputes, and may file them automatically. Flat fee or per-PO pricing.
Strengths
Tradeoffs
A full-time operations or finance team member who reconciles deductions, files disputes, and manages relationships with distributors.
Strengths
Tradeoffs
Evaluation framework
When evaluating deduction management approaches, these are the dimensions that matter most. Weight them based on your specific situation — a brand new to KeHE prioritizes classification accuracy; a brand at scale prioritizes automation and prevention.
| Dimension | Recovery service | Internal hire | Software platform |
|---|---|---|---|
Classification accuracy How well does it separate contractual from disputable? | Varies by provider. Few publish accuracy metrics. | Manual review. Accuracy depends on individual knowledge. | Varies by vendor. Ask for code-level accuracy and how it is validated. |
Evidence automation Does it assemble BOL, ASN, POD automatically? | Typically collects portal data. May not integrate with WMS, carrier, or email. | Manual. The ops person hunts across portals, email, and spreadsheets. | Varies. The strongest tools pull evidence from your operational systems, not just the portal. |
Dispute filing Does it submit disputes or just identify them? | Some file automatically. Others produce a report you file yourself. | Manual filing through distributor portals (K-Solve, UNFI Direct). | Varies. Some file directly in distributor portals; others prepare disputes for you to submit. |
Prevention Does it check compliance before shipment? | Rarely. Most recovery tools start after the deduction posts. | Possible but inconsistent. Depends on the person's time and attention. | Varies. Some check compliance before shipment; most start after the deduction posts. |
Distributor coverage KeHE, UNFI, Walmart, Target — how deep? | Varies. Some cover broad-but-shallow. Others specialize in one retailer. | Limited by hours and knowledge. A new distributor means new learning. | Varies. Ask which distributors and retailers are supported, and how deeply. |
Pricing model How are you charged? | 20-35% of recovered dollars. | Salary + benefits ($60K-$90K+/yr). | Usually a platform fee rather than a percentage of recovered dollars. |
Time to value How fast until you see results? | Weeks to months for onboarding and first recovery. | Months to hire, train, and build institutional knowledge. | Days to weeks depending on integrations. Some offer a free audit to start. |
This comparison reflects general patterns. Individual vendors and hires vary. Always evaluate against your specific distributor mix, team size, and deduction volume.
Market landscape
Several vendors serve different segments of the CPG deduction management market. Each has genuine strengths and real tradeoffs. The right choice depends on your revenue stage, team size, distributor mix, and whether you want to own the workflow or outsource it.
End-to-end deduction management combining software and a managed-service team. Raised $35M Series A. Claims 200+ customers and 20+ retailer integrations.
Best for
Brands that want deduction recovery handled for them, not by them. Markets to both enterprise and emerging brands.
Strongest advantage
Combines technology with human analysts. Published case studies with named customers and specific dollar amounts. Strong proof density.
Where it falls short
Managed-service model means the brand builds no internal capability. Revenue is tied to deductions continuing — the same incentive structure as traditional recovery services.
Free deduction audit tool plus self-serve software plus a contingency recovery service. Targets emerging CPG brands.
Best for
Brands wanting a free starting point. Their comparison content ranks well in search for evaluation-intent queries.
Strongest advantage
Free audit entry point with low friction. Covers both KeHE and UNFI deductions. Clear pricing for the software tier.
Where it falls short
Starts at the deduction, not the PO. No upstream prevention, no systems integration with EDI/WMS/email, and no evidence assembly from fulfillment.
Automated deduction management and dispute filing. Enterprise-oriented platform covering multiple retailers.
Best for
Large CPG companies ($50M+ revenue) with high deduction volume that need scale automation for dispute filing.
Strongest advantage
Scale automation for high-volume dispute filing. Strong content marketing for KeHE K-Solve how-to queries.
Where it falls short
Enterprise pricing and implementation timeline. Not designed for emerging or scaling CPG brands ($500K–$5M revenue). Prevention is not the primary focus.
ERP-adjacent accounts receivable platform with deduction management as one module in a broader AR automation suite.
Best for
Enterprise organizations with complex ERP environments (SAP, Oracle) that want deduction management integrated into their existing AR workflow.
Strongest advantage
Deep ERP integration for enterprise. Mature platform with broad AR automation beyond just deductions.
Where it falls short
Not CPG-specific. Deductions are one feature among many. KeHE/UNFI-specific depth is limited compared to specialized tools.
Deduction management platform with OCR-based intake and categorization. Originally focused on Costco and Target retailer deductions.
Best for
Brands managing deductions from large retailers (Costco, Target, Walmart) where backup PDF scanning and categorization is the primary need.
Strongest advantage
Clean interface. Strong at categorizing deductions from scanned backup PDFs. Good for retailer-direct deduction workflows.
Where it falls short
KeHE-specific depth is limited. No PO-level operational context or upstream prevention.
Where EasyOps fits in this landscape
EasyOps is purpose-built for emerging and scaling CPG brands ($500K–$30M revenue) selling through KeHE, UNFI, Walmart, Target, Walgreens, and Costco. If you're a $500M enterprise with a 10-person deduction team, HighRadius or iNymbus may be a better fit. If you want deductions managed for you, Glimpse's managed service may be the right model. EasyOps is built for the team of one to five that wants to own the workflow and retain full visibility into their data.
Evidence boundary: Competitor descriptions reflect publicly available information as of November 2026. Pricing, features, and positioning change. Always verify current vendor capabilities directly.
Where EasyOps fits
EasyOps is purpose-built for CPG brands in the $500K–$30M revenue range selling through KeHE, UNFI, Walmart, Target, Walgreens, and Costco.
If you're a $500M+ enterprise with a 10-person deduction team and complex ERP integrations, an enterprise-grade platform may be a better fit. EasyOps is built for the team of one to five that manages everything.
$151,671
classified in one audit
5 min
from upload to results
88%
contractual identified
$5,940
recoverable surfaced
Before the demo
These questions separate vendors who have depth from those who have a slide deck. Bring your own deduction data to the call — the answers are more honest when they're running against your numbers.
A vendor that can't cite a specific number with a defined validation methodology is guessing. Ask for the denominator: "100% accuracy on what? 10 codes or 100?"
Identification without filing creates a to-do list, not a recovery. Ask whether the tool submits directly to the distributor portal or produces a report you file manually.
Recovery gets the dollar back. Prevention keeps it from leaving. Ask whether the tool surfaces recurring patterns (by DC, by cause, by time period) that feed upstream operational changes.
Percentage-of-recovered creates a misaligned incentive: the provider profits from your deductions continuing. A platform fee aligns the provider's interest with reducing your deductions over time.
"We support KeHE" can mean anything from "we read K-Solve exports" to "we have validated rules for every deduction code." Ask for the code-level coverage, not just the distributor name.
The strongest signal is whether the vendor will run your actual deduction data during the demo, not just show a canned demo environment.
The practical answer
Software handles the recurring classification, evidence collection, and dispute filing. A person makes judgment calls, manages distributor relationships, and handles edge cases. A service may add specialized execution for a defined scope. The evaluation should begin with which jobs are recurring (automate), which require judgment (staff), and which are currently being abandoned (tool or service).
Start by understanding what your team is actually doing today — not what a vendor slide deck says they should be doing. Then evaluate which approach fills the biggest gap with the least friction.
Frequently asked
A recovery service is an outsourced provider that manages disputes for you, typically taking 20-35% of what they recover. Deduction management software gives your team the tools to classify, dispute, and prevent deductions directly, usually for a flat platform fee. The key difference is who owns the workflow and how the economics align.
No. EasyOps is deduction management software, priced as a platform fee rather than a percentage of recovered dollars. Your team owns the workflow and retains full visibility.
Pricing varies widely. Recovery services charge 20-35% of recovered dollars, which can be significant at scale. SaaS tools typically charge a monthly platform fee ranging from hundreds to thousands per month depending on volume. Internal hires cost $60K-$90K+ fully loaded. The right comparison is total cost of ownership, including the time your team spends on deductions regardless of which approach you use.
Yes. Many CPG brands use a combination: software for classification and evidence, a recovery service for above-threshold disputes they don't have time to file, and an internal person for judgment calls and relationship management. The evaluation should focus on which jobs are recurring (automate), which require judgment (staff), and which are currently being abandoned (tool or service).
Start with the seven dimensions in the evaluation framework above: classification accuracy, evidence automation, dispute filing, prevention, distributor coverage, pricing model, and time to value. Weight them based on your specific situation — a brand new to KeHE cares most about classification accuracy; a brand at scale cares about automation and prevention.
Glimpse combines software with a managed-service team — they handle deductions for you. EasyOps is software your team uses to own the workflow. Glimpse is stronger if you want someone else to own it. EasyOps is stronger if you want to build internal capability and retain full visibility into your data. The pricing models also differ: Glimpse's managed service involves a share of recovered dollars; EasyOps charges a flat platform fee.
Yes. EasyOps offers a free deduction audit at compliance-audit.tryeasyops.ai — upload a KeHE K-Solve export and see which lines are contractual versus disputable in about 5 minutes. No sign-up required. OverDeduct also offers a free audit tool. Both are useful starting points for understanding your deduction landscape before committing to a platform or service.
Related resources
Side-by-side comparison of Glimpse, iNymbus, HighRadius, and more.
Read →
The complete definition for CPG brands: types, impact, and how to manage them.
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What evidence each distributor expects, organized by deduction type.
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Estimate your annual deduction exposure and recoverable value.
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